The restaurant at the NH Tango , Buenos Aires , Argentina up via individual deals as it does in the United States .
Like La Quinta , Wyndham Worldwide is set to expand in Latin America via non-exclusive franchising deals and management deals . Wyndham is targeting Brazil , Colombia , Peru , Mexico and Argentina .
“ We believe the non-exclusive development agreement is a win-win ,” says Daniel Del Olmo , Wyndham Hotel Group ’ s senior vice president and managing director of Latin America and Tryp by Wyndham .
In March , Wyndham signed an agreement with EmCorp , a real estate development company that is privately held by BRIZ , Belo Horizonte , Brazil , to launch the budget Super 8 and midscale Wyndham Garden brands in Brazil . The agreement calls for 3,000 guestrooms to be developed through 2014 in the country , where Wyndham currently has 13 hotels operating under the Ramada , Howard Johnson and Tryp by Wyndham
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Given the relative lack of institutional investors in Latin America and the more restrictive conditions local banks place on credit , getting development projects off the ground typically involves building relationships with high-net-worth individuals in those countries .
“ The big challenge is finding good land at a reasonable price and finding suitable financing for new developments ,” says Ernesto Marino , founder and president of BSH International , São Paulo . “ Obviously relationships are the key to success .” brands . Wyndham also recently signed its first management deal for a Tryp by Wyndham in Panama .
Latin America is the fastest-growing region for Starwood Hotels & Resorts Worldwide in terms of RevPAR , which was up 15 % year-on-year in 2011 . Starwood operates 70 hotels in Latin America , not including the Caribbean , and has 14 announced for its pipeline .
“ The current performance is something that boosts interest in future development ,” says Ricardo Flores , Starwood ’ s vice president of acquisition and development .
Starwood says Brazil , Mexico , Panama , Colombia and Argentina look the most promising for development for each of its brands and that it will expand via and franchise deals . “ We will franchise Westin Hotels & Resorts , Four Points by Sheraton , Sheraton and Aloft ,” Flores says . “ Aside from W Hotels and St . Regis , we are open to franchising all our brands .”
For example , IHG has a master franchise agreement for its InterContinental Hotels & Resorts brand with Real Hotels & Resorts , a subsidiary of Grupo Poma , San Salvador , El Salvador . Grupo Poma is privately held by the Poma family and headed by CEO Ricardo Poma . Grupo Poma also has franchise agreements with Choice Hotels International , Silver Spring , Maryland , and Marriott International .
“ 88 % of our Latin American portfolio has been developed with individuals in Latin America . There are less
Hilton Worldwide , McLean , Virginia , is currently developing model guestrooms for Latin America . “ We ’ re developing a Hilton Garden Inn and Hampton Inn guestroom specifically for that part of the world in terms of building materials using locally sourced stone ,” says Danny Hughes , Hilton ’ s senior vice president for the Caribbean and Latin America . “ We ’ re trying to eliminate as many things as possible that need to be brought in .”
Hilton is targeting Brazil , Colombia , Peru , Mexico , Panama and Argentina for expansion with its DoubleTree by Hilton , Hilton Garden Inn , Hampton Inn by Hilton and Waldorf Astoria Hotels & Resorts via management deals and selective franchising . Hilton says its Latin American portfolio of 47 hotels is currently performing well , and it has 20 hotels under construction under those four brands .
“ We are very much focused on building by branding and management .
institutional relationships in that region than elsewhere in the world ,” says Alvaro Diago , IHG ’ s COO for Latin America .
Victor Zafer Donmez , regional director of the Americas for NH Hoteles , says understanding the local language and culture is paramount to getting deals done . “ Culture , language and history play a big role because most of the deals are still created thanks to personal contacts with individual owners at the highest level ,” Donmez says . “ Personal trust and empathy are more important than the size of the deal or the contract .”
www . hotelsmag . com June 2012 HOTELS 33